Americana sale put on hold

Plans to sell the firm behind fashion brand Bench look to have been put on hold amid the uncertain consumer spending climate, the M.E.N understands. HG Capital appointed NM Rothschild earlier this year to advise on options for Manchester-based Americana Holdings, which has 130 staff in the city and 700 across 30-plus stores worldwide.

Plans to sell the firm behind fashion brand Bench look to have been put on hold amid the uncertain consumer spending climate, the M.E.N understands.

HG Capital appointed NM Rothschild earlier this year to advise on options for Manchester-based Americana Holdings, which has 130 staff in the city and 700 across 30-plus stores worldwide.

Americana is believed to have attracted a good deal of takeover interest. Potential buyers who have run the rule over the business include a private equity outfit based in Germany, one of Bench’s key markets.

Bench clothing, shoes and accessories are sold across Europe, Canada and South Africa as well as the UK.

HG Capital bought Americana, which has its headquarters in Ardwick, in 2007 in a deal which valued the business at £190m.

Americana has a price tag of around £300m.

One told the M.E.N: “It remains for sale but the process is on hold for the time being.

“Consumer markets are very volatile and unpredictable – retailers get a good week followed by an average one or below.

“There is tons of interest in Americana and investor appetite for what is a high-quality business. The sale will happen at some stage, but only when its shareholders are absolutely sure they will get the right outcome. There is no need to rush into it.”

Another said: “The current climate is probably not the best to be looking at getting maximum value for the business.

“Although Americana is doing brilliantly internationally, the UK is tough.”

Americana is led by chief executive Peter McGuigan and achieved sales of £121.6m in the year to June 26 2010, an increase of £12.3m, with underlying pre-tax profits up from £20.9m to £26.6m. It is understood to have continued its growth in the last 12 months.